Raytheon Chosen by General Motors to Provide Dealership Technician Training.

LEXINGTON, Mass.--(BUSINESS WIRE)--March 15, 1999--Raytheon Company (NYSE:RTNA)(NYSE:RTNB) has been awarded a five-year contract by General Motors Corporation to design, develop and deliver technical training to the automotive company's dealership service personnel throughout the United States.

The agreement between Raytheon and General Motors' Service Operations organization, which takes effect April 1, calls for the development of computer-based training, web-based training and interactive distance learning to largely replace the reliance on regional and remote training centers. Instructor-led training, however, will continue to be conducted at five regional training centers that will be operated by Raytheon.

General Motors' Service Operations provides the company's 7,000 dealerships nationwide with technical service training.

Raytheon will be developing and delivering a standardized curriculum for General Motors that its service technicians will be able to access via computer at individual dealership service centers. By accessing this information where they work, service technicians will be able to gain performance-based training on such topics as engine repair, engine performance, air conditioning, automatic transmission, electrical systems, brakes, manual transmissions and steering and suspension.

Peter D. Lord, General Motors' executive director of Service Operations, said, "Changes are required to meet the complex training requirements of dealership service personnel for the technical advances being incorporated in our products. These changes not only necessitate a new approach to addressing complex training needs, but also must reduce the amount of time dealer service technicians spend away from their jobs.

"Our projections," Lord added, "forecast an increased need for over two million days of training through the year 2003. This drove our strategy in finding a more efficient and effective manner to perform training while making it convenient for our dealership network."

Training efficiency and effectiveness will be enhanced by the development of a standard curriculum, including new product training. Raytheon will deliver the standard curriculum through the use of General Motors' interactive distance learning system and GM Access, a web-based system, beginning October 1.

"We will be working with General Motors to develop a robust, performance-based instructional program," said Richard Baldridge, a vice president of Raytheon Training and Services. "The complete media mix - including interactive distance learning, computer-based training, web-based training and hands-on training - will be learner-focused and dealer-centered to help improve information retention and reduce time away from the job to gain training."

General Motors offers hands-on automotive vehicle training today at 23 training centers and multiple remote and satellite training locations. On June 1 the operation of training centers will transition from General Motors to Raytheon. Raytheon will keep and operate five of the regional centers to meet hands-on vehicle training requirements. These regional training centers will be located in Chicago, New York City; Dallas, Los Angeles, and Atlanta.

General Motors' Detroit training center also will remain open to serve as the interactive distance learning broadcast center for the training network, in addition to serving as a hands-on training facility.

Raytheon will be responsible for managing the Automotive Service Educational Program (ASEP). The ASEP program is offered in cooperation with General Motors' dealerships and selected colleges to provide automotive technical training. To complement and facilitate the need for hands-on refresher training, service technicians also will be able to participate in training programs offered through the network of colleges and universities across the country participating in the ASEP program.

Raytheon is General Motors' global training partner.

Raytheon Company, based in Lexington, Mass., is a global technology leader that provides products and services in the areas of commercial and defense electronics, engineering and constructing, and business and special mission aircraft. Raytheon has operations throughout the United States and serves customers in more than 80 countries around the world.